Holding

The Supreme Court held that the provisions of Order 20 r. 11, Order 41 r. 1, Order 2 r. 2 and Order 23 r. 1 do not deprive the appellant of his statutory right to file appeal No. 44; the earlier appeal was incompetent and its withdrawal does not bar the later appeal.

Summary

The State Trading Corporation sued M. Ramnarain Private Ltd. for a sum of over Rs. 40 lakhs. The trial judge granted a decree in favour of the plaintiff and allowed the payment of the decretal amount in instalments. The defendant filed an appeal (No. 36/1981) only against the instalment order, withdrew it the next day, and then filed a second appeal (No. 44/1981) against the decree on its merits. The Bombay High Court dismissed the second appeal, holding that the earlier appeal barred any further challenge. The Supreme Court examined whether the earlier appeal, which was filed against an order that had not yet been incorporated into the decree, was competent, and whether its withdrawal extinguished the appellant’s statutory right of appeal. It held that Order 20 r. 11 makes the instalment direction an order until incorporated into the decree, rendering appeal 36 incompetent; its withdrawal therefore did not waive the right to appeal the decree. The Court further held that Orders 2 r. 2, 23 r. 1 and the Letters Patent do not affect the right of appeal, and that mistaken legal advice does not constitute waiver or estoppel. Consequently, the appeal was allowed and the matter remanded to the High Court for determination on merits.

Issues considered

The effect of filing and withdrawing an earlier appeal (No. 36) against the instalment order on the maintainability of a later appeal (No. 44) against the decree.
Whether Order 20 r. 11 of the CPC makes the instalment direction part of the decree, thereby rendering appeal 36 an appeal against a decree.
The requirement of filing a certified copy of the decree under Order 41 r. 1 and its impact on the competence of the appeals.
The applicability of Order 2 r. 2 and Order 23 r. 1 of the CPC to the right of appeal.
Whether the appellant’s conduct—prayer for instalments, filing and withdrawing the earlier appeal—amounts to waiver or estoppel of the statutory right of appeal.
The effect of mistaken legal advice on the appellant’s right to appeal.

Legislation cited

Code of Civil Procedure, 1908s. Order 20 r.11, s. Order 23 r.1, s. Order 2 r.2, s. Order 41 r.1, s. Section 77 (Evidence Act), s. Section 96
Letters Patent (Bombay High Court)s. Clause 15
Limitation Act, 1963s. Section 90 (period for appeal)

Subjects

right of appealorder vs decreeOrder 20 r.11competence of appealwithdrawal of appealwaiverestoppelmistaken legal adviceinstalment payment directionCivil Procedure

Judgment

M. RAMNARAIN PRIVATE .LTD.
AND ANR. A
v.

STATE TRADING CORPORATION
OF INDIA. LTD.
B
May 5, 1983
i.
(P. N. BHAGWATI, R. S, PATHAK AND
AMARENDRA NATH SEN, JJ.]
c
Cudeo/Civi/Procedure,-J908-0rder 20 r. JI-As amended in 1916-
Interpretation of-Direction regarding p'ayn-1ent of decretal amount-An order-
Til/ incorporatr!d in Decree-No appea/'l{es against that order-Appeal lies against
deCree containing such direction-Order not •judg111ent' within clause 15 of Letters
Patent. ·

Code o/Ci)!i/ Procedure, Order 41, r. I-Interpretation of-Filing copy
D
of decree with nienzorandum- of appeal 1nandatory-Appea/ filed w~ut decree
invalid-Filing or wifh,frawal of inco1npetent appeal:-No bar to file p1oper appeal
against decree.

Code of Civil p,.ocedure, Order 2, t:. 2-Jntirpretation of-Not applicable
to appeals. E

Code of Civil frocedure, Order 20, r. 11, Order 2, r. 2 and Order 23, r.1-
lnterpretation of-Do not deal with right of-appeal or extinguishn1ent thereof-Do
not confer or ljeprive right of appeal. Right to appeal-Creation of statute-May
be lost by law or conduct of appellant or appellant may disentil/e himself tO
enforce right of appeal-Prayer regarding pay1fient of decretal amount does not F
deprive a party of his right to file an appeal against the decree-Mistaken advice
of lawyer does not deprive appellant of his right of appeal.

The respondent, as plainti[, filed a suit against the appellant, as deFen·
dant, in the Original side of the· Bombay High Court for the enforcemellt of
its claim for a large amount_ <1f over Rs. 40 lakhs. The appellant not only G
contested the claim but also made a counter-claim. The appellant made a
request that in the event of a decree being passed· against them, they may be
allowed to pay the decfetal amount in instalments. A single Judge dismissed
the: counter-claim and passed a decree in favour of" respondent and allowed the
decretal amount to be paid in instalments. Delivery of Judgment which com-
menced on 12th December 1980 was concluded on 16th December 1980, upon H
which the_ advocates for the appellant addressed a letter to the Prothonotary
and SeOior Master, High Court, requesting that the accompanying memotan-
Qum.Of appeal be taken on file. Th.is appeal whi"11 wa.s numb_ered 36_ of 1981
26 , SUPREME COURT REPORTS 11983) 3s.c.R..
was filed on 20th January, 1981. The appeal was directed against the order in
A. respect of instalm~nts. On 21st January 1981, when the matter was called for
admission before a Division Bench the appellant asked for leave to withdraw
the appeal and the appeal was allowed to be withdrawn. A week after the
withdraw'al of appeal No. 36 the appellant filed an ·appeal against the judgment
taking grounds relatin~'to the merits of the case and also the direction as to
instalments. Thi~ appeal was numbered 44 of 1981. .After this appeal was
heard on inerits for a few days, the repondent raised a preliminary objection
B that because the appellant had earlier filed appeal No. 36 against the provision
regarding insta Jments and which had been withdrawn, the present appeal No.
44 was not maintainable. The Division Bench upheld the preliminary objection
and dismissed appeal No. 44 on the ground that the ·appellant had by filing
appeal no. 36 against the provision relating to instalments abandoned its right
to challenge the decree on merits.

c The ~pi:ellant contended in this Court that the filing of earlier ;ppeal No.
36 or the withdrawal thereof does not affect the right of app_ellant to prefer
·appeal no. 44 against the de.cree on merits. Appeal No. 3G was filed against
the order'of the Hi"gh Court passed under Order 20, r. 11 of the Code of Civil
'Procedure in regard to instalments only and not against the decree. Appeal
No. 36 had been filed soon after the judgment.had been pronounced and long
D before the decree incorporating the· order regarding instalments had been
drawn up. tt'A_ppeal No. 36 must be considered to be an appeal against the
order and not against the decree. The right to prefer an appeal is a creature
of statute. The order regarding instalments is not appea13.bte under C.P.C. and
such an order cannot also be considered to be a 'Judgn1ent' within the meaning
of clause 15 of the Letters.Patent. Appeal No. 36 which was against the order
E fegarding instalments was incon1petent and ·was therefore no appeal in the e'ye
of law and for all legal Purposes was non-est. Even if appeal No. 36 has to be
considered an appeal against the decree in view of amended provision of Order
20, r. 11 ·qf C.P.C., the said appeal still must be held to be incompetent and no
appeal in the eye of law as the appeal was filed without a certified copy -
of the decree and wa< even withdrawn before a certi~ed copy of the decree
cOuld be filed. Appea~ No. 44 filed against the decree in terms of the
F prOvisions contained. in the Original Side Rules of Bombay High Court
becomes a proper and conlpetent appeal as the earlier appeal No. 36 was not a
valid' appeal in the eye of law. The provisions of Order 2, r. 2 and Order 23,
r. 1 of C.P.C. do not in any way affect the maintainability and the merits of
11ppeal no. 44 as the cause of action and the subject matter of appeal No. 44 are
entirely different from the cause of action and the subject matter of appeal No.
36. The appellant did not waive his statutory right to file the appeal. The
G appellant by his conduct has also not disentitled himself to file Appeal No. 44.
Appeal no. 36 was filed on the advice of lawyer under mistaken belief; mistaken
advice of a lawyer cannot be the foundation of a plea of estoppel. No preju-
dici.: has been caused to the respondent by filing and withdrawal of appeal No.
36 by the appeUant.
H
The respOndent contend~d that""in view of the amended provisions of
Order 20, r. 11, the order regarding instalments which is required to be incor-
porated in the decree necessarily fornis a -part of the decree. In view of the
~
RAMNAAAIN (Pl LTJ?. v. s:r. CORPN.
provisions contained in Order 2, r. 2 and Order 23, r. 1 of C.P.C. it-was open
' to the appellant to prefer an appeal against the decree or to appeal against any
part thereof. The appel\ant preferred to file appeal No. 36 only against the
A
part of the decr~e relating to instalments and not against the decree as _a whole.
The filing of appeal restricted to the directions as to the instalments bars a
subsequent appeal against the decree on merits. The appellant having obtained
a benefit or advantage under the decree to the prej,.udice of respondent cannot
now question the correctness o( the decree passed.
B
Allowing the app~al,

HELD: The provisions of Order 20, r. 11, Order 41, r. 1 Order 5, r. 2
and Order 23, r. 1 of the Code of Civil Procedure do not deprive the appella"nt
of his right to file appeal No. 44.. [54 DJ

. The right to prefer an appeal is a right created by statute. A right.of
c
appeal may be lost to a party in appropriate cases by the provisions of law and
also l;>y the conduct of the party. The la.w of limitation may. deprive the party
of the right he may enjoy to prefer an appeal. Also in appropriate cases a
party may be held to have become· disentitlcd from enforcing the right to
appeal which he may otherwise have. [46 A-C]
D
ln the instant case the defendant-appellant did have a right of appeal
against the decree by virtue of the provisions of s. 9_§ read with Order 41 of
Civil Procedure. The appeal has been filed within~ the period of limitation,
The law of limitation, therefore, does not defeat the right of the appellant to
file an appeal. [46 C-D]

Order 20, r. 11 makes provisions for postponment of payi:nent of money E
· decree and of its payment in instalments and lays down the procedure for
dirt"cting payment of a money decree in instalments. The amendment .intro-
duced in 1976 to Order 20, r. 11 requires that any provision directing the pay-
m~nt of the amount decree.d shall be postponed or shall be made by instal-.
ments may be incorporated in the decree. The direction regarding payment
of the decretal arilount is an indepehdent order which is reqliired to b_, incor- F
porated in the decree and it can only be incorporated in the decree when the
decree.is drawn up. It retains the character of an order "till it is so incor-
porated in the decree. The rules of the Origin"al Side of the Bombay High
Court make necessary provisions as to the_ drawing up of a decree. lo view of
procedure laid down in the rules for the drawing up of a deeree, there is bound
to be a time lag petween the judgment and the dr_awing up of a decree, in
which the order regar~ing instalment is to be incorporated. Appeal against G
any .Provision granting instalments or refusing to grant instalments will not be
competent if the direction granting or refusing to grant instalments is con-
sidered to be an ord~r. Such an order is not appealable under the Code.
Such an order will also not be a 'judgn1enf within the meaning of clause 15 of
the Letters Patent and will not be appealable as such if however, the direction
with regard to instalments is considered to be a part of the decree, an appeal
will undoubted!~ lie as an appeal from a decree.
[47 D·E, 4fG·H, 41C-D,47 F·H]
28 SUPREME COURT REPORTS (1983) 3 S.C.R.

The provisions of Order 20, r. 1I do not deprive the appellant in the '
A insta1:J.t. case of his right to prefer an appeal against th~ decree. The earlier
appeal No. 36 of 1981 had been filed long before the decree in which the order
regarding instalments under Order 20, r.il of the Code.was to be incorporated
had been drawn up. As at the time of .filing the earlier appeal No. 36 the
Order regarding instaln1ents had not been incorporated in the decree, the order
retained its character of an order. The earlier appeal No. 36 at the time when
it was filed, should therefore be rega.rded as an appeal against an order. The
B precipe filed for the drawing up of th~ order, the letter to the Prothonotary and )'
Senior Master of the High Court by the Advocates for the appellant, the memo-
randum of appeal filed and the ainount of stamp furnished on the memorandum
are facts which go to indicate that the earlier appeal had been filed against the
order regarding instalments treating the same to be. an order. The appeal
No. 36 must therefore be held to be incompetent. If the earlier appeal ~o.-36
c were to be considered to be an appe:i.1 against the decree, the appeal would still
be incompetent, because the appellant had furnished .the amount of stan1p
necess?-rY for preferring an appeal against the order and the requisite stamp
in respect of an appeal against a decree had not been affixed.
[46 E, 48 D-E, 48 H, 49 A-B, 48 B, 43 D-Cj

Lader Order. 41, r.J, every appeal has to be prefe.rred in the from of' a
D memorandum signed by the appellant or his pleader and presented to the court
or to such officer as it appoints in that behalf, and has to be accompanied by
a copy Of the decree appealed from, and of the judgment on· which it is foun-
ded. Rule 1 empowers thD"appelJate court to dispense with the .filing of the
judgment but there is no jurisdiction in the appe-.Uate court to dispense wHh the
filing of the decree. The require1ncnt that the decree should be filed alongwith
E the memorndum of appeal is 1nandatory and .in the absence of the decree the
filing of the appeal would be incomplete, defective and incompetent. So long as
the certified copy of the decree is not filed there is no valid appeal in the eyC?
of law. Though by virtue of the provisions of the Original Side Rules of the
Bombay High Court the t:arlier apreal could be permitted to be filed.without a
certified copy of the decree or order, the appeal would not be valid and con1pe-
tent unless thf: further requirement of filing the certified copy had been
F complied with. [49 G-H, 50 A, 53. C,49 F. 52 F]
'.
Jn the instant case, at the time when the earlier· appeal No. 36 had been
withdrawn, the "certified copy of the decree had not been filed. The said appeal
without the certified copy of'the decree ren1ained an incompetent appeal. The
wHhdrawal of an h1compentent appeal which would indeed be no apreal in the
eye of Jaw cannot in any way prejudice the right of any appellant t_o file a
proper appeal, if the right of appeal is not otherwise lost by lapse of time or for
· any other valid reason. [52 F-G] ·

Order 2, r.2, contemplates that at the time of .the iiistitution of the suit,
the whole of the claim which the plaintiff is entitled to make in respect of the
cause of.action, has.to be made and also deals with the consequences of nou'-
compliance with the requiren1ents of the said rule. It is doubtful. whether the
principles underlying this rule can be said to be applicable to an appeal. This
ruie is applicable only to suits_ and cannot in terms apply to appcit.Is. Ev~n if
RAMNARAlN (p) LTD. v. S.T. CORPN. 29
) an appeal be considered to be a continuation of a suit for certain purposes,
the provision of this rule cannot in terms be made applicable to an appeal in A
view of the schen~e of the said rule and the l~nguage used therein. ' ·
[53 F-G, 53 E-F]

In the instant c_ase the provisions Of Order 2, r.2 of the Code do not
stand in the way of the appellant in the matte'=' of filing· the subsequent appeal
No. 44. Even if the principles uiiderlying Order 2, r.2 are considered as appli-
cable to an appeal the maintainability of tlie appeal No. 44 cannot be held to B
be affected in any way as the cause of action in respect of the present appeal is
entirely different from the cause of action on which the earlier a:ppeal was
filed. [23 A-B, G]

Order 23, r.1 of the Code does not also stand in the way of the main•
tainability of the instant appeal No. 44. Apart from the incompetency of C
the ea"rlier appeal No. 36, the subject matter of. the said appeal Y.as entirely
different from the subject matter of the present appeal. [53 H, A-BJ

The prOviSions of the Code of Civil. Procedure contained in Order 20,
r. 11, Order 2. r. 2 an~ Order 23, r. 1 do not 'in terms deal with any questiOn
in relation jo the right of appeal or the extiJ;lguishment thereof. These provisions
do not by thrmselves confer any right of appeal on-a party or deprive any party D
of the right of appeal which a party may enjoy. These are not the statutory
provisions which either c_onfer a right of appeal on a party or deprh·e a party of
any such right. [54 B-C]

A mere prayer for postponment of payinent of decretal amount or for
payment thereof in instalments on the basis of the provisions contained in E
Order 20, r.1 J (1) of the Code at a time when the decision in the suit is yet to
be announced can never be c6nsidered to amount to such conduct of the p:i.rty
as to deprive him his right to Prefer an appeal against any decree, if ultimately
passed, and to disentit1e him from filing an appeal ~gainst the decree. [55 G-H]

Jn the matters of litigation the litigant who is not expected to be F
familiar with the formalities of law and rules of procedure is generally guided
by the advice of hiS Iawye.rs. The statement of the· Jawyers recorded by the
Divisiori Bench in its judgment clearly goes to indicate that the lawyer had
advised· filing of the earlier appeal under mistaken belief. The act done by the
defendant-appellant" on ·the mistaken advice of a lawyer cannot fu.rnish a prop·er
ground for· depriving the defendant-appeliant of his valuable statutory right
of preferring an appeal against the decree. The filing of an incompetent G
appeal on the mistaken advice of a Jawyer cannot, in our opinion, reflect any
such conduct on the part of the defendant-appellant as to disentitle him
to maintain the peresent appeal. [56 C, D; F, GJ

The present appeal No. 44 had been filed long before the decree had
been drawn up, and, there can be no question of execution of any decree; at H
the time when that appeal was'filed. The question ef the1 defendant-appellant
having obtained an advantage un(le:r the decree does Qot 'therefore'. really
arise. [59 A-Bj
30 SUPREME COURT REPORTS . (1983] 3 s.c.R.

CIVIL APPELLATE JURISDICTION : Civil Appeal No. 2905 of '
A 1981.

From the Judgment and Order dated the 19th June, 1981 of
the Bombay High Court in Appeal No. 44 of 1981 in Suit No 540 of
1970.

B F. S. Nariman, V. Tu/zapurkar, R. Nariman, Srikant Singh and ·r
.Rajan Ktiranjawa/a for the Appellants.

L. N. Sinha, Attorney General and P. . P. . Singh. for the
Respondent.
c
The Judgment of the Court was delivered by .

AM:ARENDM NATH .SEN, J. .The maintainability of an appeal
filed by the defendant in the suit against a money-decree payable
D in instalment after the. defendant had filed an appeal only aganist the
part concerning the direction· with regard to the instalments· and bad
withdrawn the ·same, is the question for consideration in this appeal
by eertificate granted by the High Court under Article 133 (I) of .the·
- Constitution.

E
The facts material for the purp0se of the decision favolved in
this appeal are brief and may be stated. ·

The State Trading·corporation, the respondent in this appeal,
as plaintiff, filed a s.uit against the appellant who was the defendant
F in the suit on the Original Side ofthe Bombay High Court foi the
enforcement of the plaintiff's claim for a large amount which inclusive
of interest .worked. out to over Rs. 40,00,000.00. For the purpose. of
deciding this appeal, it does not .become necessary to refer .to the
nature .of the claim. and the averments made by the· plaintiff ·in the
G plaint for Claiming a decree for the said amount against ihe defen-
dant-appellant. The defendant appellan( had contested the claim. The
defendant-appellant in the written state~ent had denied the claim
of the plaintiff-respondent, pleaded legal as well as equitable set-off
and had made a counter claim. In due course the suit came up for
H · hearing before Bharncha, J. It appears that on the conclusion ·of the
hearing, the defendant-appellant prayed tliat the defendant-appellant
might be allowed to pay the decretal amount in the event of a decree
being passed against the defendant-ajljlellant, in jnstah;nent in th~
. .
. RAMNARAIN (P) LTD. v. S.T. CORPN. (A.N. Sen, J.) 31
,
manner prayed for in an affidavit containing such prayer, filea on
behalf of the defendant. The learned single Judge for reasons A
recorded in his judgment passed a decree in favour of the plaintiff-
respondent for a sum of Rs. 40,00,000.00 with costs quantified at
Rs. 42,750.00, twb counsel being certified. The learned Judge dismiss-
ed the counter claim of the defendant-appellant. without any order as
to costs. The learned Judge in the concluding portion of the judg-
ment observed as follows :
B

"Mr. Thakkar relied· upon affidavits filed on behalf
of the \st and 2nd defendants and sought for the payment
of the decretal amount a moratorium of 5 years, and after
the expiration of these 5 years, insta.lments.of Rs. 4,00,000 c
per annum. He then left it to the Court to fix such
instalments as it deemed proper. Mr. Doctor opposed
the grant of any instalment ...

.
. Neither the facts of the suit nor the averments, such D
as they are, made in the affidavits would justify the giving
of an extended period for the. payment of the decretal
amount. In the circumstances I order that the decretal
amount be paid by mothly instalments of Rs. 3,50,COO
each, the first .of such instalment to be paid up on or
before 7th March; 1981 and subsequent instalment on or
before the 7th day of each succeeding month. The plain- E
tiffs shall be at liberty to execute the decree for the
amount then due in the event of the plaintiff committing
·any one default. in payment of the said instalments."

Delivery of the judgment commenced· on the 12th December, F
1980 and was concluded on the 16th December, 1980. On the day of
1
the conC!usion of the judgnien( i.e. 16th December, 1980, · three
precipes were addressed bi the Advocates for the defendant-appellant
to the Prothoncitary and Senior Master of the Bombay High Court,
(I) for certified copy of the d.ecree when drawn' up, (2) certified ·copy G
of the judgment and (3) for certified copy of the minutes of the order.
On the 16th ·of January, 1981, the Advocates for the Defendant-
Appellant addressed· a letter to the Prothonotary and Senior Master,
High Court Bombay to the following effect : ·
H
"Be pleased to take on file the accompanying Memo
\)f appeal l1lon1,1 with compilation h1 duplicate. We als'o
3.2 SUPREME COURT REPOR1S (1983) 3 S.C.R.
)

send herewith Vakalatnama duly signed by our clients the
A appellants abovenamed. Kindly take the same on file.

We have to put on record that the appeal ·is un"der
Order 20, rule 11 of the Civil Procedure Cod~ and Court
fee of Rs. 5 is payable. We have to further state that the
. appeal is in time as certified copy of the order and judg·
B
ment as well as the decree was applied for on 16th
December, 1980 but the same has not been received by
us. Appeal is therefore in time.

Kindly see that the said appeal jg circulated before
c the Chief Justice and Hon'ble Mr. Justice Rege and that.
the same appeal is called on Wednesday the 21st day of
Junuary, 1981".

The memorandum of appeal which was numbered as appeal No .
.36 of 1981 and was filed on 20.1.81 by the defendant-appellant
D states:-

"Being aggrieved by the judgment and order dated
16th December by the Hon'ble Mr. Justice Bharucha
diiecting paymenfof the Decretal amount by monthly
E instalments of Rs. 3,50,000 each, the appellants beg to
appeal therefrom on the following amongst other
grounds",.

In this memorandum of appeal directed against the order of
F instalments, the defendant-appellant had taken 21 grounds and each
of the ground related to the order with regard to the payment of
decretal amount by monthly instalment of Rs. 3,50,000. This appeal
No. 36 of 1981 came up for admission before a division Bench of the ·
High Court consisting of the learned Chief Justice and Rege, J. on
21.1.81 and when.the matter was called on for admission, the counsel
G for the appellant asked for leave .to withdraw the appeal and the
appeal was allowed to be withdrawn. The minutes of the Court
record- "Appeal allowed to be.withdrawn". On 29.1.82 i.e. just
after a week of the withdrawal of the appeal No. 36/1981, the
defendant·appellani filed an appeal against the judgment delivered
H
on 16th December, 1980 by Bharucha, J. and this appeal was num-
bered as appeal No. 44 of 1981. The memorandum of appeal in
this appeal states : "Being aggrieved by the judgment dated
RAMNARAIN (P) LTD. v. S.T. CORPN. (A.N. Sen, J.). . 33

i
16.12.1980, passed by the Hon' hie Mr. Justice Bharucha,' the appel-
lant begs to appeal therefrom on the following amongst other A
. grounds." In this· memorandum of appeal, the appellant has taken
as many as 73 groul)dS out of which grounds nos. I to 53 relate to
Judgment and .decree on the merits and grounds 54 to 73 relate to
the provision as io instalments. This appeal i.e. appeal n<'. 44 of
1981 came up for admission on 3.2.1981 before the same Bench
consisting of the learned Chief Justice and Rege, J., when the B
plaintiff-respondents appeared through their counsel and· opposed
the admission on the ground that the appeal was not maintainable.
The appeal was, however, admitted and the minutes of the Court
after noting the appearances record-Admitted. After filing the
appeal, the defendant-appellant, made an application for stay of
the execution of the decree by way of notice of motion which \\as
c
.rejected by the diviS<on Bench. Against the said order of refusal t.o
stay execution, a special leave petition was filed in this Court. For
the propose of the present appeal, it does not become necessary to
refer to this special leave petition and the proceedings arising there-
from. The appeal came up for hearing before a Division Bench on D
the.24th of March, 1981 and the hearing continued till '27th March,
1981 and on that date hearing of the appeal was adjourned to 8th
April, 1981 as per following order :

E
"Having heard Mr. Nariman on the merits of the
appeal for almost four days though we had not heard the
respondents, we, prima facie, were of the opinion that
there was force and su?stance in several of the contentions
raised and the arguments advanced on behalf of the
appellants and as 'the second instalment under the said F
decree was payable by April 8, 1981, we suspended the
operation of the decree appealed against pending the hear-
ing and final disposal of the said appeal." .

Hearing of the appeal commen_ced again on the adjour~cd date G
i.e. 8th April, 1981 in terms of the ea<lier order and continued for
some days It appears that after the appeal had been heard on
merits for some days, it was stated on behalf of the plaintiff-
respondent before the Division Bench that the plaintiff-respondent
would b.e raising a preliminary objection as to the maintainability of H
the appeal. . It was stated on behalf of the plaintiff-respondent that
since the defendant-appellant had earlier tied an aopeal, • being
SUPREME COURT' REPORTS (1983) 3 s.C.11.

appeal no. 36 of 1981 against the provision regarding instalments
A which h&d been withdrawn on 21.1.1981 by the defendant-appellant,
plaintiff respondenf would be contending that the present appeal
No. 44 of 1981 was not maintainable. It appears that since the
objection was taken at a late stage after the learned counsel · for the .
defendant appellant had addressed the Court on merits for a number·
B of days : the Court permitted the counsel for tlie defendant 'appellant ,.,,._
to complete the arguments and the Court thereafter proceeded to )-· -
bear the respondent on the question of maintainability. On 19.6.1981,
the Division Bench dismissed the appeal up holding the preliminary
objection to the maintainbllity _of the appeal on the ground that the
defendant-appellant had, by filing appeal no. 36 of 1981 against the
c provision relating to instalments which the defendant-appellant had
withdrawn, abandoned its right to challenge the decree on merits.
'The Division Bench, however, while dismissing the appeal substitu-
tedfor the decree of the Trial Court a decree for the sum · of
Rs. 40,18,737.38 with interest on the principal amount of
Rs. 18,18,451.39@ 6 percent per annum from the date of the judg-
D
ment. till the payment or realisation and maintained the order- for
costs as passed by the Trial Court.

Aggrieved by the judgment and decree of the dismissal 01
the appeal filed by the defendant-appellant in the High Court on .
E the ground that the appeal. was not maintainable, this appeal has
been filed by the defendant appellant with certificate granted by the
High Court.

Mr. Nariman, learned counsel appearing on behalf of the
F defendant-appellant, has submitted that the High Court has erred in -
holding that the instant appeal nci. 44 of .1981 is not maintainable,
as the defendant-appellant by filing the earlier appeal no. 36 of 1981
against- the provision relating to instalments had abandoned its right
to challenge the decree on merits. The principal contention of
Mr. Nariman is that the filing of the earlier appeal no. 36 of 1981
G
or the withdrawal of the same by the defendant-appellant does not
affect the right of the defendant-appellant to prefer the present
appeal against the decree on merits and does not preclude the defen-
dant appellant from filing the present appeal and proceeding with
H the hearing thereof Mr. Nariman has argued that the earlier appeal
no. 36 of 1981 was filed against the order of the High Court passed
under Order 20, rule 11 of the Code of Civil Procedure with- regard
to t)l~·instahnepts only and the said appeal was not an appeal against
RAMNARAJN (P) LTD. v_ S.T. CORPN. (A.N. Sen, J.) 3$

the decree. In support of Ws submission Mr. Nariman has referred
i to the precipe filed on behalf of the defendant-appellant, the letter
addressed by the Advocates for the defendant appellant on the 16th
·January, 1981 to the Prothonotary and Senior. Master, High C'ourt
and also to the memorandum of appeal filed in appeal no. 36 of
19.81 and the stamps paid on the said memorandum of appeal.
Mr. Nariman has submitted that the earlier appeal no. 36 of 1981
which was an appeal against an order was -incompetent, as no appeal B
lay from the said order. It is the submission of Mr. Nariman that
·the right to prefer an appeal is a cre.ature of Statute and unless the
right to prefer an appeal is conferred by law a litigant cannot prefer
any ~ppeaL Mr. Nariman submits that an order regarding instal-
ment is not appealable under the Code and such an order cannot c
also be considered to be a 'judgment' within the meaning of cl. 15
, of the Letters Patent. Mr. Nari man, therefore, contends that the
earlier appeal no. 36 of 1981 was an incompetent appeal and was,
therefore, no appeal in the eye of law and for all legal purposes was
non-est. It is the contention ·of Mr. Nariman that as the earlier
appeal no. 36 of 1981 was incompetent and non-est in the eye of law, D
the filing of the appeal and its withdrawal· do not have any legal
conse,quence and cannot, in any \\lay, prejudice the right of the
... defendant-appellant to prefer a proper appeal against the decree .

E
Mr. Nariman has next contended that notwithstanding the
amendment introduced in order .20, rule 11 of the Code providing
that the order of instalment of payment of the decretal amount has
to be incorporated in the decree, the said appeal no. 36 of the 1981
still must be held to be incompetent, Mr. Nariman argues that the
R~les of Original Side· of the High Court make provisions with F
regard to drawing up of the decree and there is a time-lag between
judgment and the drawing up of the decree. •Mr. Nariman
points out_ that as the rules of the Original Side of Hte High
Court permit filing of an appeal without a certified copy of
the decree or order, appeal no. 36 of 1981 had , been filed G
soon after the judgment had been pronounced and long before
the decree had been _drawn up, and the said order had been
filed without the certified copy of the order or the decree iri
terms of the provisions of rules of the Original Side of the High
Court.. It is the argument of Mr. l\'ariman that as the appeal no.
H
36 of !981 had·been filed long before the decree incorporating the
order had been drawn up, appeal l\'o. 36 of 1981 which had been
filed only a~ainst the order re~arding instalments !llUS! b~
SUPREME COURT REPORTS (1983) 2 S.C.R.

considered to be an appeal against the order and not against
A the decree. Mr. Nariman has further argued that even if it can be
said that Appeal no. 36 of 1981 has to be considered to be an
appeal against the decree in view of the amended provisions of ·
Order 20, rule 11 of the C"de, it cannot be disputed that the
said appeal had been filed without a certified copy of the de~ree
B and the said appeal had been withdrawn before any certified copy
of the decree had been filed in the said appeal, and the said appeal
must therefore be held to beno appeal in the eye of law. Mr. Nariman
submits that the later appeal no. 44 of 1981 against the decree had·
been filed in terms of the provisions contained· in the Original Side
rules of the Bombay Higli Court had the certified copy of the judg-
c ment and decree had been filed in Appeal no. 44 of 1981. . It is
Mr. Nariman's argument that appeal No. 44 of 1981 becomes a
proper and competent appeal, as the earlier appeal no. 36 of 1981
could not be considered t.o be a valid appeal in the eye of law at the
time of the withdrawal of the same in. the absence of the certified
D copy being filed. Mr. Nariman argues that though by virtue of the
provisions of the Bombay High Court Origmal Side Rules an appeal
can initially be filed without the certified copy, the certified copy the
fi'ing of which is a mandatory requirement of law has to be filed
within the period of limitation before the hearing of the appeal to
render the appeal valid and competent. Mr. Nariman in this connec-
..
E tion has referred to the' decisions of this Court in Jagat Dhish
Bhargava v. Jawah.arlai Bhargava & Ors.( 1) and Shakuntla Devi Jain
v. Kuntal Kumari & Ors.(') Mr. Neriman has further argued that
there is no provision in the Code or any other law which prevents
an appellant from preferring more than one appeal. Relying on
F the decision of this Court in Jagat. Dhish Bhargava (supra) Mr.
Nariman has submitted that where the decree consists of distinct
and severable I!"rts enforceable against the Same or SCVeral defen-
dants, separate appeals against such distinct and severable directio.ns
or orders or provisions in a decree may be filed. It is Mr. Nariman's
argument that in the instant case, even if the ordef for instalment be
G considered to be a part of the decree, the decree shall consist cif two
distinct and severable parts, (I) on the merits of the claim and (2) on
the question of payment in instalment. Mr. Nariman has next contend-
ed that the provisiOns of Order 2, rule 2 of the CivilJProcedure Code
do not in any way affect the maintainability and the merits of the
B
(r) [19611 2 S.C.R. 918.
(2) (1969J l S.C.R. lti06.
RAMNAlwN (Pl LTD. v. s.T. coRPN. {A.N. Sen, J.) 37
present appeal no. 44 of 1981. He has submitted that the said
provisions have no application to an appeal and in. any event, the A
cause of action and the subject matter of the present appeal are
entirely different from the cause of action and the subject of the
earlier appeal. Mr. Nariman argues that tbougb this Court in the
case of Bijoyananda Pat11aik v. S. Sahu(1) has held. that the provi-
sions of Order 23, rule -I of the Code of Civil Procedure will be
applicable to the withdrawal of an appeal, the provisions will also
B
not preclude the appellant from filing the present Appeal no. 44 of
198!. It is his submission' that in considering the provisions of
order 23, rule 1, the relevant fact to be borne in mind is the subject
matter of the appeal and if the subject matter of the appeal be
different, as in the present case it is, -the earlier appeal no. 36 of c
1981 being confined to the subject matter of instalment and the
subsequent appeal no. 44 of '1981 being against the decr~e on the
m"rits of the claim,-the withdrawal of the -earlier appeal cannot,
in any way, be a bar to the maintainability of the subsequent appeal.
Mr. Nariman has in this connection referred to the decision of this
Court ih Vallabhdas v. Dr. Madan Lal & Ors.(') in which this Court D
equated the meaning of the words "subject matter" in order 23 rule
1 with the meaning of the words "cause ·of action" in Order 2 rule 2.
Relying on this decision, Mr. Nariman has argued that the "subject
matter" of the appeal within the meaning of Order 23, rule 1, must
be considered in _the light of the meaning of the words ·~cause of E
action" .in Order 2, rule 2; and it is his· argument that as the "cause
of action" in respect of the claim for ·instalment is eutirely different
from the "cause of action" in respect of decree which embraces
withiu its fold the ·'subject matter" of the respective claims of the
parties iu the-suit, the withdrawal of the earlier appeal no. 36 of
1981 against the instalments cannot in any way affect the maintain- F
ability of the appeal no. 44 of 1981 against the decree on the merits
of the claim.

Mr. Nariman does not dispute that though the right of an
appeal is a statutory right eujoyed by a party, the party in an appro- G
priate case may lose his right of appeal. But he submits that a vety
strong case must be made out to establish that a party has. forfieted
his right to prefer an appeal. Accordiug to Mr. Nariman, the right

H
(1) (1964! 2 SC.R. 539.
Fl [1971] 1 S.C.R. 21 L
stiPRJiME couRt REPORts · t19S3) JS.C.R.
)
of appeal may be lost because of any provision of law and also in
A appropriate cases, the parties may lose his right of appeal because
of his conduct. Mr. Nariman contends that in the instant case, the
present appeal is within time; and the provisions of the Code earlier
referred to or the provisions of any other law do not have the effect
of extinguishing the right of the appellant to prefer an appeal against
B the decree. Mr. Nariman submits that the facts and circumstances
of this case cannot justifiably lead to the conclusion that the appellant
by his conduct has disentitled himself to file the present appeal
against the decree. He argues that the conduct that can be attri-
buted to the appellant is that he prayed for instalments, filed an
appeal against the order regarding i05talments and he has withdrawn
c the same. He reiterates that if the earlier appeal against the order
regarding the instalments is held to be incompetent, the conduct of
(he appellant in withdrawing the incompetent appeal is indeed of no
consequence. Mr. Nariman argues that the prayer for instalments
is made only on the basis that if the case of the appellant is not
accepted and a decree is passed against him, the appellant may be
D granted instalments to pay the decretal amount and such a prayer
when it is not known whether a decree will at all be passed against
the appellant and if so, for what amount, can never be considered ,.
to amount to such conduct as to disentitle or preclude him from
filing an appeal against the decree. Mr. Nariman argues that it
E cannot be said that in the instant case the defendant-appellant has
elected to exercise one of two alternatives ·remedies and by virue of
such election he has deprived himself from exercising the other right,
as the defendant-appellant has both the remedies open to him and
no question of election on his part arises, Mr. Nariman submits
that.in the facts and circumstances of this case it cannot legitimately
F be held that the appellant waived his statutory right to file an appeal
against the decree and otherwise became estopped from exercising
bis right. _In this connection Mr. Nariman has referred to Halsbury's
Laws of England, 4th Edn., vol 16, paras 1471, 1472, 1473 and I474
at pages 992 to 996 which read as follows :
G
"1471. Waiver.-Waiver is the abandonment of a
right in such a way that the other party is entitled to
plead the abandonment by way of confession and avoid-
H .. ance if the right is thereafter asserted, and is either
express or implied from conduct. It . may sometimes
resemble a form of election, and sometimes be based on
ordinary principles of estoppel, although,_unlike estoppel,
iwtNARAIN (P) LTD. v. S.T. CORPN. (A.N.Sen, J.) 3~

waiver must always be, an intentional act with knowledge.
A person who is entitled to rely on a stipulation, existing A
for his benefit alone, in a contract or of a statutory
provision, may waive it, and allow the contract of trans•
action to proceed as though the stipulation or provisiorf
did not exist. Waiver of this kind depends upon con-
sent, and the fact that the other party has acted on it is
B
i sufficient consideration. Where the waiver is not express
it may be implied from conduct which is inconsistent
with the continuance of the right, ~ithout need for
writing or 'ror consideration moving from, or detriment
to, the party, who benefits by the waiver; bnt mere acts
of indulgence will not amount to waiver; nor can a party c
benefit frqm the waiver unless he has altered his position
in reliance on it. The waiver may be terminated by
reasonable but not necessarily formal notice unless the
party who benefits by the waiver cannot resume his
position, or termination would cause injustice to him.
It 'seems that, in general, where one party has, by ·his
words or conduct, made to the other a promise or assur-
ance which was intended to affect the legal relations
• between them and to be acted on accordingly, then, .once
the other party has taken· him at his word and acted on
it, so as to alter his position, the party who gave the E
promise or assurance cannot afterwards be allowed to
revert to the previous legal relationship as if no such·
promise or assurance had been made by him, but he
must accept their legal relations subject to the qualification
which he has himself so introduced, even though it is not'
supported in point of law by any consideration. F

Where the right is a right of action or an interest in
property, an express waiver .depends upon the same con-
sideration as a release. If it is a mere statement of an
intention not to insist upon the ·right it is not effectual
unless made with consideration, but where there is con-
sideration the statement- amounts to a promise and
operates as a release. Even •where there is no express ·
waiver the person entitled to the right may so conduct
himself that it become inequitable· to enforce it (this is H
sometimes called an implied waiver), but in snch cases
the right is lost on the ground either of estoppel or of
40 SiJl'llEME COURT REPORTS (19SJj 3 S.C.R.

acquisence, whether by itself or accompanied by delay;
A Where it is claimed that the decision of a tribunal is a
nullity, a party's right of action in the High Court is not
w_aived by appeal to a higher tribunal whose decision is

-
expressed by Parliament to' be final.

B 1472. Knowledge of rights essential. For a rel.ease
or waiver to be effectual it is essential that the person }
granting it should be fully informed as to his rights.
Similarly, a· confirmation of an invalid transaction, is
inoperative unless the person confirming knows of its
invalidity. ·
c
1473. Estoppel and acquiescene .. The term ;a·cquies·
cence' is used where a person refrains from seeking redress
when there is brought to his notice a violation of his rights
of \\hich he did not know at the time, and in that sense
D acquiescence is an element in !aches. Subject to this, a
a person whose rights have been infringed without any
knowledge or assent on his part has vested in him a
right or action which, as a general rule, cannot be deli-
vered without accord and satisfaction or release under
.
seal.
E y
. The term, is however, properly used where a person
having a right, and seeing another person about to
commit it in the course of committing an act infringing
upon the right, stands by in such a manner as really to
F induce the person committing the act, and who might
otherwise have abstained from it, to believe that he assents·
to its [being committed, a person so standing by
cannot afterwards be heard to complain of the act. In
. that sense the 'doctrine of acquiescence may be defined
as quiscence under such circumstance that assent my
G be reSonably inferred from it, and is no more than
an instance of the -law of estoppel by words or conduct,
the principle of estoppel by representation applying
both at law and in equity, although its application
to acquiescene is equitable. The estoppel rests upon the )'
H circumstance that the person standing by in effect makes '
a misrepresentation as to a fact, namely, his own title; a
lllere statement that he intends to do something, for
RAMNA!\AIN (P) LTD. v. s.T. CORPN. (A.N. Sen, J.) 41
example, to abandon his right, is not enough. Further-
more, equitable estoppel is not applied in favour of a A
voluntea:r

The doctrine of acquiescene operating as an· estoppel
was founded on fraud, and for the reason is no less appli-
cable when the person standing by is a minor. As tbe B
cstoppel is raised immediately by the conduct giving raise
to it k1pse of time is of no importance, and for the reason
the. effect of acquiscence is expressly preserved by statute.

1474. Elements in the estoppel : When A stands by
while his right is :being infringed by B the following
c
circumstances must as a general rule be present in order
that the estoppel may be raised against A: (1) B must be
mistaken as to his own legal rights: if he is aware that he
is infringing the rights of another, he takes the risk of
those rights being asserted; (2) B must expend money, or D
do some act, on the faith of his mistaken belief: other-
wise, he does not suffer by A's subsequent assertion of his
... rights; (3) acquiescence is founded on conduct with
a knowlcge .of one's legal rights, and hence A must know .
·or his own rights; (4) A must know of B's mistaken belief;
with that knowledge it· is inequitable for him to keep E
ailence and ailow B to proceed on his mistake; (5) A must
encourage B in his expenditure of money or other act,
either directly or by abstaining from asserting his legal
right. On the other hand there is no hard and fast rule
that ignorance of a legal right is a bar to acquiescence in F
a breach of trust, b~t the whole of the circumstances
must be looked at to see whether it is just that a com-
plaining beneficiary should proceed against a trustee."

Mr. Nariman has argued that in the ihstant case the plaintiff
G
•respondent has claimed against the defendant-appellant a very large
sum of money and the claim has been very seriously centested by
the defendant-appellant who has not merely disputed the· claim of
the plaintiff-respondent but has in fact made a counter-claim in the
suit against the plaintiff-respondent. He points out that immediatley H
after the pronouncement of the judgment, three separate precipies or
requisitions have been put in on behalf of the defendant-appellant.
In view of the urgency of the situation, an appeal had immediately
42 SUPllEME coVRi REJIORTS (l9S~.J ~ S.C.R.

been filed against tha order of instalment for immediate relief and
A thereafter an appear against the decree had been filed after -the
earlier appeal against the instalments had been withdrawn. ·He has
submitted that under these facts and circumstances it can never be
said that the appellant had accepted the decree and had abandoned
its right to p1-.,fer an appeal against the sam~. Mr. Nariman further
submits that a litigant usually proceeds on! the advice of h:is lawyer
B
and the mistaken advice of a lawyer cannot be the foundation of the
plea of estoppel and in support of his. submission he relies on the
decision cif -the Judicial Committee in the case of John Agobog
Vertannes & Ors. v. James Golder Robinson & Another.(') He ha.
further argued that in the instant case no possible prejudice has been
c done to the respondent by the filing or withdrawal of the earlier
appeal and the respondent could never, in any way, be under an im-
pression that by the institution of appeal No. 36 of 1981, the appellant
had unequivocally given up his right to appeal from the d"cree on
merits. Mr. Nariman has commented that the Division Bench had
admitted this appeal despite the objection of the plaintiff-re:lpondent
D
and it is his comment that after having admitted the appeal the
Division Bench had in fact heard the appeal for a number of days.
He submits. that · the Division Bench should not have, therefore,
entertained the plea of maintainability and the Division Bench should •
not have dismissed the appeal on the ground that the appeal is not
E maintaintable and it ·is his submission that the said view of the
Division Bench is any event e~roneous and unsustainable in Jaw.

The learned Attorney General, appearing on behalf of the
·plaintiff-respondent, has submitted that the Division Bench in the
instant case has correctly come to the conclusion that the appeal
F preferred by the defendant-appellant against the decree is not m_ain-
tainable in view of the filing of the earlier appeal by the defendant-
appellant against the provision regarding instalments and th.e with-
drawal of the same. The learned Attorney-General has argued
that the provision in the judgment regarding instalments on the basis
G of the. affidavit filed on behalf of the defendant-appellant fonns part
of the decree and cannot be considered to be an order. The learned·
Attorney-General has in this connection referred to the amended
provisions contained in Order 20, rule 11 of the Code of Civil
Procedure. Relying on these provisions, the learned Attorney-General
H contends that the order regarding instalments which is required to

(1) A.I.R. 1927 P.C. 151.
RAl'iNARAIN (P) LTD. v. s.T. CORPN. (A.JV. Sen, J.) 43
f. be incorporated in the decree, necessarily forms a part of the decree
. itself. It is his c~ntention that the mere fact that it may take a little . A
time to draw up the decree, iucorporating the privisions regarding
instalments does not make the provisions any the less a part of the
decree. He argues that it was open to the appellant to prefer an
appeal against the decree and it was also open to him to appeal
against any part thereof. It is his argument that the appellant prefer- B
red to file an appeal only against the_ part of the decree regarding
instalments without filing any appeal against the decree as a whole.
He contends that the filing of a· restricted appeal against the directions
for instalments bars any subsequent appeal against the amount
decreed on merits. In support of this contention the learned. Attor-
ney General has referred to the provisions contained in Order 2, rule c
2 and to order 23, rule I of the Code of Civil Procedure. Order 2,
rule 2 of the Code of Civil Procedure provides :-
" (I) Every suit shall include the whole of the claim
which the plaintiff is entitled to make in respect of
the cause of action, but a plaintiff may relinquish any D
portion of his claim in order to bring the suit within
the jurisdiction of any Court.
•
(2) where a plaintiff omits to sue in respect" of, or
intentionally relinquishes, any portion of his claim,
he shall not afterwards sue in respect of the portion E
so omitted or relinquished.
(3) A person entitled to more than one relief in respect
of the same cause of action may sue for all or any of
such reliefs : but if he omits, except with the leave of
the Court, to sue for all such reliefs, he shall not F
afterwards sue for any relief so omitted.

Explanation :- For the purposes of this rule an
obligation and a collateral security for its performance
and successive claims arising under the same obligation G
shall be deemed respe~tively to constitute but one cause of
action."

Order 23, rule I of the Code of Civil Procedure reads :-

(1) At any time after the intsitution of a suit, the H
plaintiff may as against all or any of the defendants
abandon his suit or abandon a part of his claim ;
44 SUPREME COURT REPORTS tfi1idj 3s.c.il.
Provided that where the plaintiff is a .minor or other
A person to whom the provisions contained in Rules I to
14 of Order XXX!Iextend, neither the suit nor any part
of the claim shall be abandoned without the ]_eave of the
Court.

The Attorney General argues that an appeal is a continuation
of the suit and the principles underlying Order 2, rule 2, therefore,
apply to an appeal. It is his argument that the right of appeal
which is no doubt a statutory right will also necessarily be governed
by the provisions of Order 2, rule 2 and as· the 'appeal is filed not
against the entire subject matter of appeal arising out of the cause
c of action in the appeal, the right to file another appeal against the
decree is clearly lost. He has further submitted that the defendant-
appellant having chosen to file an appeal only against a part of the
decree confined to the payment of the decretal amount in i:nstalme;1ts
·aud not against the decree on its merit; and havin'g withdrawan the
D said appeal unconditionally has clearly forfeited his right to prefer the
instani appeal.

The learned Attorney General has next contended that in the •
instant case apart from the aspect that the right of appeal has been
extinguished by virtue of die statutory provisions earlier referred to,
E the defendant appellant must be held to have clearly abandoned or
waived his right of preferring an appenl against the decree by filing
an appeal only against the part of the decree directing the payment
of the decretal amount in instalments. It is the argument of the
Learned Attorney General thnt defendcnt-appellant had the right tc,
F prefer an appeal against the whole of the decree, if he had. felt agg-
rieved by the same. He submits that if the defendant-appeJJant does
riot have any grievance against the decree on merits but is cnly
aggrieved against the par of the decree providing for instalments, the
defendant-appellant would not certainly exercise his right of appeal
against the decree on merits against which be had no grievance, and
G the defendant-appellant has filed an appeal only against the part
against which he had a grievance.. He submits that the defendant-
appellant having done so, must b~ held to have waived tds right to
file an appeal against the decree on merits.
H
The learned .Attorney General has argued that in any event
the defendant ·appellant is estopped from exercising his right of
appeal in view. of the fact that the defendant-appellant has asked for
RAMNARAIN (P) LTD. v. S.T. CORPN. (A.N Sen, J.) 45

and obtained a decree payable in instalments and the d~fendant
-{
appellant has taken advantage of the said instalment decree to the A
prejudice of the plaintiff-respondent. It is his argument that it is not
open to the defendant-appellant to question the validity of the decree
after he has obtained benefit under the same. The Learned Attorney
General contends that although a right to prefer an'ltppeal is a right
conferred by the Statute on a party aggrieved, the agrieved party may
B
be estopped and or precluded from asserting or exercising the righ(
of appeal under given circumstances. He submits that is well-settled
that if any party takes advantage of an order or decree or derives
benefit under the mm~, be disentitles himself ty 'his conduct to
question the validity of the order or the decree. The learned Attorney
General sums up submitting that in the instant case, the defendant- c
appellant ;is clearly estopped fro01 filing appeal No. 44 of 1981
against the decree and the said appeal filed by the appellant is not
maintainable because of the following circumstances :-

• 1. The defendant-appellant has asked for the payment D
of the decretal amount in instalments;

- 2. The defendant-appellant had filed appeal No. 36 /
1981 against the decree only with regard to the
instalments allowed and the defendant appellant had
E
not filed any appeal against the decree as a whole
questioning the correctness of the decree;

3. The defendant-appellant' had subsequently with-
drawn the appeal no. 36/1981 filed against the decree
F
without obtaining any leave of the court to file any
fresh or subsequent appeal; an~

4. The defendant-appellant having asked for payment
of the decretal amount in instalments and having
obtained such a· decree has. enjoyed the benefit of
G
such a decree to the prejudice of the plaintiff res-
pondent who was prevented from executing the
decree for recovering the· entire decretal amount
Immediately in view of the provisions regarding pay-
H
ment in instalments and had suffered prejudice; and
the defendant appellant having obtained a benefit or
advantage under the decree Io the prejudice of the
46 SUPREME COURT REPORTS [1983) 3 S,C.R.

plaintiff-respondent cannot now turn roun.d to
A question the correctness of the decree passed.

The right to prefer an appeal is a right created by Statute.
No party can file an appeal against any judgment, decree or order
as a matter of cdbrse in the absence of a suitable provisions of some
B law conferring on the party concerned the right to file an appeal
against afl.y judgment, decree or order. The right of appeal so
conferred on any party may be lost to the party in appropriate cases
by the provisions of some Jaw and· also by the conduct of the party
The Jaw of limitation may deprive a party of the right he may enjoy
to prefer an appeal by virtue of any statutory provisions. Also, in
c appropriate cases a party may be held to have become disentitled
from enforcing the right of appeal which he may otherwise have.

In the present case there cannot be any manner of doubt that
the defendant appellant did have a right of appeal against the decree
D by virtue of the provisions of the Code of Civil Procedure. S. 96 of
the Code, read with 0. 41 of the Code makes it abundentJy clear
that an appeal will lie from .an original decree. It js also not in dis-
pute that the appeal has been filed within the period of limitation.
The Jaw of limitation, therefore, does not defeat the right of the
appellant to file appeal.
E
The provisions of Order 20, rule 11, in our opm1011, do not
,-
deprive the appellant in the instant case of his right to prefer an
appeal against the decree. Order 20, rule 11, of the Code provides as
follows:-
F
"(!) Where and in· so far as a deceee is for the payment of
money, the Court may for any sufficient reason al. the
time of passing the decree order that payment of the
amount decree shall be postponed or shall be made
by instalments, with or without interest, not withstan-
G ding anything contained in the contract under· which
the money is payable.

(2). After the passing of any such decree the Court may,
H on the application of the judgment-debtor, and with
consent of the decree-holder, order that payment of
the decreed sI-all be postponed or shall be made by
.. iqs(alments on Slich terms as to the payment of inte-
RAMNARAJN (P) LTD. v. S.T, CORPN. (A.N. Sen. J.) 47

rest, the attachment of the property of the judgment·
debtor, or the taking of the security from him, or A
otherwise as it thinks fit."

By the C.P.C. Amendment Act, 1976, 0. 20, R. 11 (1) was
amended and the amended ruly reads :-
~ B
. ·.( "(!) Where and in so far as a decree is for the payment of
money, the Courr may for any sufficient reason
' (incorporate in the decree, after hearing such of the
parties who had appeared personally or by pleader
at the last hearing, before judgment, an order that)
payment of the amount decreed shall be postponed
c
or shall be made by instalments, with or without
interest, notwithstanding anything contained in the
contract under which the money is payable."

Order 20, rule 20, rule 11 makes provision for postponement
D
of payment of a money decree and of its payment in instalments and
lays down the procedure for directing payment of a money decree
in instalments. The amendment introduced in 0. 20, rule 11, (1}
by the Amending Act, 1976 requires that any provision directing that
payment of the amount decreed shall be postponed or shall be made E
by instalments may be incorporated in the decree. In view of the
provisions requiring the order of postponement of payment of money
decree or-payment thereof in instalments to be incorporated in the
decree, the question for consideration is whether the ·earlier appeal
filed against the provision in relation to instalments, is an appeal
against the decree or against an order, and the further questiop is F
whether the said appeal was competent or not. If the earlier appeal
. is considered to be an appeal against an order, the earlier appeal will
clearly be incompetent. An appeal against any provision granting
instalments or refusing to grant instalments will not be competent
if the direction granting or refusing to grant instalment is con'. G
sidered to be an order. Such an order is not appealable under
the Code. Such an order will also not be a 'judgment' within· the
meaning of cl. 15 of the I.etters Patent and will not be appealahle
as such. There is, indeed, no provision in any law to make such an
order appealable. If, however, the direction with regard to instal· H
· ments is considered to be a part of the. decree, an appeal will
undoubtedly lie as an appeal f'rom a decree. In the instant case, the
facts and ~ircum stances go to indicate that the defendant-appellant
48 SUPREME COURT REPORTS (1983) 3 s.c.R.

had, in fact, filed an appeal against the direction regarding instalment
A treating the same to be an order. The precipe filed, the lett1~r address-
ed by th.e Advocates for the defendant-appellant dated 16th January,
1981 to the Prothonotary and Senior Master High Court of Bombay,
the memorandum of appeal filed and the stamp furnished on th€
memorandum, all go to indicate that the appeal filed was an appeal
against an order. If Mr. Nariman·s contention thafthe earlier appeal
B No. 36of1981 was an appeal against an order is accepted, the said
appeal must he held to be incompetent.. There appears to be force in
the contention of Mr. Narimatl that the earlier appeal No. 36 of 1981
was an appeal against an order·notwithstanding the provisions con-
tained in Order 20, rule 11 of the Code. The rules of the Original
c Side of the Bombay High Court make necesrnry provisions as to the
drawing up of a decree. An order under Order 20, rule 11 of the
Code can only be incorporated in the decree when the decree is drawn
up.. The rules of the Original Side of the Bombay Hirjl Court make
necessary provisions as to the drawing up of a decree. In view of the
procedure laid down in the rules for the drawing up of a decree,
D there is bound to be a time lag between the judgment and the draw-
ing up of a decree in which the order regarding instalment is to be
incorporated. Mr. Nariman rightly points out that the earlier appeal
No. 36 of 1981 had been filed long ·before the decree in which the
order regarding instalments under Order 20, rule 11 of the Code had
E to be incorporated, had been drawn up and had come into existence
with·the orders incorporated therein. There appears to be force in the
contention of Mr. Nariman that so long as the decree incorporaiing
the order regarding the instalments in terms of the provisions contain-
ed in the amended providons of Order 20, rule 11 of the Code is not
drawn up, the direction or order regarding instalments retains the
F character of an order in law.

Order 20, rule 11 of the Cod(clearly postulates that the direc- ·.
don regarding postponement of payment of money decree or payment
thereof in instalments is an independent order which is to be incorpo-
rated in the decree. Appeal No. 36 of 1981 hadb een filed. soon after
G the pronouncement of the judgment, before the decree incorporating
the order regarding the instalments had been' drawn up. The direction
regarding payment of the decretal amount is a'n order which is requi-
red to be incorporated in the decree and it can only be incorporated
H in the decree, when the decree is drawn up. It retains the character
of an order till it is so incorporated in_ the decree. As at the time of
filing the earlier appeal No. 36 of 198 i the order regarding instal-
i;nents had not been incornorated in the decree, the ord1!r retained
RAMNARAIN (P) LTD. v. S.T. CORPN.{A.N. Sen. J.) - A9
1 its character of an order. The earlier appeal No. ·36 of 1981 at the
time when it was filed, should therefore be regarded as an appeal A
against an order. The precipe filed for the drawing up of the. order,
the letter to the Prothonotary and Senior Master of the High Court by
the Advocates for the defendant-appellant, the memorandum appeal
filed 'and the amount of stamp furnished on the memorandum are
facts which go to indicate that the earlier appeal had been fil~d
against an order regarding instalments treating the rnme to be an
order.

Even if we accept the contention of the .learned Attorney
General that the earlier appeal No. 36 of 1981 must in law be held
to be an appeal against a decree, as the order regarding instalments c
bas to form in law a part of the decree by virtue of the ptovisions
contained in amended rule 11 of order 20 of the Code, the appeal
will still be incompetent, because the defendknt-appellant bad furnis-
hed the amount of stan1p necessary for preferring an appeal .against
an order and the requisite stamp in respect of ·an appeal a)lainst ·a
decree had not been affixed. If the earlier appeal No. ?6 of 1981 .D
· were to be considered to be an appeal against the decree; the. appeal
would not be competent for want of payment of requisite Court ree
payable in respect of an appeal against the decree. Though by virtue
of the provisions contained in the Original Side Rules of the High
Court an appeal· may be filed without the certified copy of the decree
E
or order a provision made to enable the party to seek immediate
interim relief from the Appellate Court,-the further requirement to
file a certified copy of the decree in the ·case of an appeal from a
decree within the period of limitation to make the appeal valid and
competent bas still to be satisfied: Unless a certified copy of the decree
is filed, the appeal does not. become competent and the appeal is .
liable to be dismissed as incompetent and invalid for not filing the
~ertified copy of the decree within the period of limitaiiot\. ~o long
as the certified copy of the decree is not filed there is no valid appeal.
in the eye of law. In the case of Jagat Dhish Bhargava v. Jawaharla/
Bhargava (supra) this Court held at page 922 :~
.G
"The position of law under 0. 41, r. I is absolutey
clear. Under the said rule every appeal has to be perferred
~·
in the form of a memorandum signed. by the appellant
or his. pleader and presented to the Court or to such H
officer as it appoints in that behalf, and has·to be accom-
.. panied by a copy. of the decree appealed from, artd Of the
, j_m;lgi)le!lt Qn which.it is founde\I. Rule. I empowers the
50 SU,PRl!ME COURT REPORTS [1983] 3 s.c.R.
I
appellate Court to dispense with the filing of the judgment
A but there is no jurisdiction in the appellate Court to
dispense with the filing of the decree: Where ·the decree
consists of different distinct and severable directions enfor·
ceable against the same or several defendants the Court
may permit the filing of such portions of the decree as are
B the subject matter of the appeal but that is a problem with
which we are not concerned in the present case. In law
the appeal is not so much against the judgment as against
the decree; that is why Article 156 of the Limitation Act
prescribes a period of 90 days for such appeals and
provides that the period commences to run from th1~ date
c of the decree under appeal. Therefore there is no doubt
that the requirements that the decree diould be filed along
with the memorandum ofappeal is mandatory, and in the
absence of the decree the filing of the appeal. would be
incomplete, defective and incompetent."'
D
Also in the case. of Shankunta/a Devi v. Kunta/ Kumari (supra),
thi' Court held at pp. 1008 to 1010:
..
"Order 41, rule 1 of the Code provides that .every
appeal shall be preferred in the form of a memoraudum
E signed by the appellant or his pleader 'and the memo-
randum shall be accompanied by a copy of the· decree
·appealed from and (unless the appellate court dispenses
therewith) of the judgment on which it is founded'. Under
0.41, r. I the appellate Court can dispensee with the
F filing of the copy of the judgment but it has no power to
dispense with the filing of the copy of the decree. A
decree and a judgment are public documents and under
· S. 77 of the Evidence Act only a certified copy may be
produced in proof of their contents. The memorandum
· of appeal is not validly' presented, unless it is ae<;om-
G panied by certified copies of the decree and the
judgment.

The content.fan of Mr:·Misra is that a decme is the
H formal expression of the adjudication. and that where
as in this case, no formal decree is drawn up, the deter'.
mination under sec. 47 is a judgment and the Court
l\avin~ admitted the appeal must ·be presumed to. have .
RAMNARAIN (P) LTD. v. S.T. CORPN. (A.N. Sen, J.) 5:1
dispensed with the filing of the copy. of the judgment.
In this ·connection he drew our attention to ·sec: 2(2), 33 A
and 0.20 rules I, 4, 6. We are unable to accept these
contentions. We are not satisfied that the High Court
dispensed with the filing of the copy of the order under
Sec. 47.. Admittedly, the High Court did not pass any
express order to that effect. It may be that in a proper
·case such an order may be implied from the fact that the B
High Court admitted the appeal after its attention
. was drawn to the defect [see G.I.P. Railway Co. v.
. Radhakissan(1)]. But in the present case the High Court
was not aware of the defect and did not intend to
dispense with the filing of the copy. c
Moreover an order under Sec. 47 is a decree, and
the High Court had no power to dispense with the filing
of a copy of the decree. Ordinarily ·a decree · means the
•formal expression of the adjudication in a suit. The D
decree follows the judgment and must be drawn up sepa-
rately. But under sec. 2(2), the term 'decree' .is deemed
to include the determination of any question within sec.
A 47. This inclusive definition of decree applies. to 0.41,
r. !. In some courts, the decision under sec. 47 is re·
quired to be formally drawn up as a decree in that case E
the memorandum of appeal must be accompanied by a
copy of the !fecree as well as the judgment. But in some
other Courts no separate decree is drawn· up embodying
the adjudication unde_r sec. 47. In such a case, the.
decision under sec. 47 is the decree and also the· judg-
ment, and the filing of a certified copy of the decision is
F
sufficient compliance with 0.41, ·r. I. As the decision is the
decree the appeal is incompetent unless the ·memorandum
of appeal is accompanied by a certified copy · of the
decision. Our attention was· drawn to the decision in
Bodh Narain Mahto v. Mah.abir Prasad &. Ors.(') where G
· Agarwala, J. seems to have held that where no formal
decree was prepared in the case of a decision under sec.
47 the appel.larit was not required to file a copy of the
order with the memorandum of appeal. We are unable
II
(1) A.LR. 1926 Nag. 57.
(2) A.l.R. 1940 Pat. 176.
52 SUPREME COURT REPORTS [l983) 3 s.c.a.

to agree with this ruling. The correct practice was laid
A down in Kam/a Devi v. Tarapada Mukherjee(') where )

Mookerjee, J. observed :

'Now it frequently' happens that in cases ·or
execution proceedings, though there is a judgment,
an order, that is, the formal expression of the
B deeision is not drawn up. In such cases the con·
eluding portion of the judgme~t which embodies the
order may be treated as the order against which the
appeal is preferred. In such a case it would be
sufficient for the appellant to attach to his memo·
c randum of appeal a copy of the judgment alone,
and time should run from the date of the judgment.
Where, however, as in the case before us, thoire is. a
judgment stating the grounds of the decision. and ·a
separate order is also drawn up embodying the
the formal expression ·or the decision, copies of both
D the documents musi be attached to the memornnduni,
and the appellant is entitled to a deduction of the
time taken up in obtaining copies thereof.

We hold that the memorandum of appeal from· the •
E order dated January 20, 1967 should have been a.ccoin·
panied by a certified copy of the order and in the absence·
of the requisite copy ~of the appeal was defective and
incompetent.".

Though by virtue of the provisions of the Original Side Rules
F of the Bombay High Court the earlier appeal could be permitted to be
filed without a certified copy of· the decree or order, the appeal
would not be valid and competent unless the further requirement of
filing the certified copy had been complied with. At the time when
the earlier appeal no. 36 of 1981 ·had been withdrawn, the certified
copy of the decree had not been filed. The said appeal without th•
certified copy of the decree remained an incompetent appeal. The
withdrawal of an incompetent appeal which will indeed l:e no appeal
in the eye of law cannot in any way prejudice the right of any
appellant to file a proper appeal, if the right of appeal is not other·.
H wise lost by lapse of time or for any other valid reason. We are,
therefore, of the opinion that the provisions contained in order 20,

~I) IS c.i.J. 49~.
iuiliNARAIN (P) LTD. v. S.T. CORPN. (A.N. Sen, h 53
rule 11 of the Code do not in the facts and circurilstances of the
present case deprive the appellant of his right to file an appeal A
against the decree.

The provisions of 0. 2, rule 2 of the Code of Civil Procedure
do not stand i11 the way· of the appellant in the matter of filing the
subsequent Appeal no. 44 of 1981. Order 2, rule 2 deals with suits 8
and provides that every suit shall include the whole of the claim
which the plaintiff is entitled to make in respect of a cause of action,
but a plaintiff may relinquish any portion of his claim in order to
bring the suit within the jurisdiction of any court. Order 2, ru)e
2(2) further provides that where the plaintiff omits to sue in respect
of, or intentionally relinquishes, any portion of his claim, he shall. c
not afterwards sue in respect of the portion so omitted or relin-
quished. The requirement of Order 2, rule 2(3) is that a person
entitled to more than one relief in respect of the same cause of action
may sue for all or any of such reliefs; but if he omits, except with
the leave of the Court, to sue for all such reliefs, he shall not after- D
wards sue for any relief so omitted. The explanation provides that
- for the purposes of this rule an obligation and a collateral security
for its performance and successive claims arising under the same
obligation shall be deemed respectively to constitute but one cause
of action. It is clear from the provisions of Order 2, rule 2 that
this rule is applicable only to suits and cannot in terms apply to E
appeals. Even if an appeal be consid¥red to be a continuation of.
a suit for certain purposes, the provision of Order 2, rule 2 cannot
in terms be made applicable to an· appeal in view of the scheme of
the said rule and ~he language used therein. Order 2, rule 2, con-
templates that at the initial stage of the institution of. the suit, the
·whole of the claim which the plaintiff is entitled to make in respect F
of the cause of action, has .to be made and further deals with the
consequences of non-compliance with the requirements of the said
rule .. It is indeed doubtful whether the principles nndedying this
rule can be said to be applicable to an appeaf. Even if the principles
underlying Order 2, rule 2 can be considered to apply to an appeal, G
the maintainability of the instant case cannot be· held to be affected·
in any way as the cause of action in respect of the present appeal Is
entirely different from the cause of actiqn on the basis of which the
earlier appeal had been filed.
H
Order 23, rule I of the Code of Civil Procedure does not also
stand in the way of the maintainability of the instant appeal. The
54' SUPREME COURT REPORTS [19831 3 s.c.R..
l
withdrawal of the earlier appeal which was not competent and was
no appeal in the eye of the law and which was only concerned with
A regard to the provision of instalment cannot in any way effect the
validity oft.he present appeal. i\ part from the incomp(:tency of the
earlier appeal No. 36 of 1981, the subject matter of the said appeal
was entirely different from the subject-matter of the present appeal.

B It may further be noted that the provisions of the Code of
Civil Procedure'contained in Order 20, rule 11 order 2, rule 2 and
Order 23 rule I do not in terms deal with any· question in relation
to. the right of appeal or the extinguishment thereof. The aforesaid
provisions.do not by themselves confer any right of appeal on a
party or deprive any party of the right of appeal which a party may
c enjoy. These are not the statutory provisions which either confer a
right of appeal on a party or deprive a party of any such right. We
have earlier considered the effect of there provisions and we are of
the opinion that these provisions do not in the facts and circums-
tances of this case have the effect of depriving the defendant-
D appellant of his right to file the present appeal.

The only other question that requires to be considered is
whether the defendant-appellant in the facts and circumstances of
this case has become disentitled to file the instant appeal after the
E filing of the earlier appeal and the withdrawal of the same. It is
beyond question that the right 4lf appeal which. is, no doubt, a crea-
ture of. statute, may: be lost to a party in a proper case and an
appellant may be debarred from exercising the right of ths appeal
Whether any party has lost his valuable right of preferring an appeal
conferred on him by law must·necessarily depend upon the facts and
F circumstances of a particular case.

The facts and circumstances which have been relied upon in
support of the submission that the defendant-appellant in the instant
case bas become disentitled to file the present appeal No. 44 of 1981
G are : (I) the defendant-appellant filed an affidavit asking for post-
ponment of payment of the decretal amount in instalments; (2) the
dafendant-appellant filed an appeal only against the direction re-
garding instalments before the filing of t)le present appeal against
the decree on merits; (3) the defendant-appellant had withdrawn
H the earlier appeal without obtaining leave of Court to file any fresh
appeal; (4) the defendant-appellant had ·obtained benefit of the
instalment decree passed by the trial Court.· We may not that the
R.AMNARAIN' (Pl LTD. v. s •.T. coRPN. (A.N. Sen, i.) SS
ground which weighed with the learned judges of the Division Bench
of the Bombay High Court was the filing of an appeal against only A
the provision regarding instalments and not against the decree on
merits.

We shall now proceed to consider whether the facts·and circum-
stances of this case justifiably lead to the conclusion that the defen- B
dant-appellant has become disentitled to file the present appeal.

It is not in dispute that the defendant-appeliant had filed an
affidavit asking for postponement of payment of any money decree
that may be passed and also for payment of the amount in instal-
ments. The filing of an affidavit on the conclusion o( hearing anti
c
before pronouncement of judgment cannot in the facts and circums-
tances of this case be considered to amount to such conduct on the·
part of the defendnt-appdlant as to disentitle him to file an appeal
against any decree that may ultimately be passed against him. In
view of the provisions contained in.Order 20, rule II (1) of the Code, D
the prayer for instalment jlas necessarily ·to be made before the .
pronouncement of the judgment and the passing of a decree, as the
Court after the passing of the decree can grant instalments only with
the consent of the decree-holder· in terms of the provisions. contained
in Order 20, rule 11 (4) of the Co.de. Till the very last stage of the
E
hearing of the suit the defendant-appellant had seriously contested
the claim of the plaintiff-respondent and had in fact pressed for a
counter claim against the plaintiff-respondent. Before the delivery
of judgment the defendant-appellant could not possibly have known
with any amount of certainti whether an decree against the defen-
dant appellant wool!! be passed in the suit, and if so, for what F
amount. Under such circumstances it cannot be said that any party·
who in view of the provisions contained in Order 20, rule 11 (I)
makes a prayer for postponement of payment of the decretal amount
and asks for payment of the .same in instalments makes any repre-
sentation that he will accept any decree that may be passed against
him and will not. prefer any appeal against the same. A mere prayer G
for postponement of payment of the decretal amount or for payment
thereof in instalments on the basis of the provisions contained in
Order 20, rule 11 (I) of the Code at a time when the. decision in the
suit is yet to be announced can never be considered to amount to
such conduct of the part) as to deprive him of his right to prefer an
H
appeal against any decree, if ultimately passed, and to .disentit!e "him
from filing an appeal against the decree. It is no doubt true that
'"' StiPR.EME COURT REPORTS (19~:313 s.c.R.

after ihe judgment had been pronounced and the decree had been
A passed it was open so the defendant-appellant to file an appeal
against the decree. It may be noted that immediately after the
pronouncement of judgment and the passing. of the decree three
separate precipes or requisitions had been filed on behalf of the
<l,efendant-appellant to the Prothonotary and Senior Master of the
Bombay High Court and there was a specific· requisition for a certi-
B.
fied copy of the decree when drawn up, apart from requisitions for a
}-··
certified copy of the judgment and also for certified copy of the
minutes of the order. The immediate filing of the requisition for
the certified copy of the decree and also of the judgment clearly
manifests the intention of the defendant-appellant to prefer •m appeal
c against the decree. It is common knoledge that in matters of liti-
gation the litigant who is not expected to .be familiar with the for•
malities of law and rules of procedure is generally guldM by the
advice of his lawyers. The statement of the lawyers recorded by the
Division Bench in its judgment clearly goes to indicate that the
lawyer had advised filing of the earlier appeal under a mistaken
D belief. The act done by the defendant-appellant on the mistaken '
·advice of a lawyer cannot furnish a proper ground for depdving the
defendant-appellant of his valuable statutory right of preferring an
appeal against the decree. We have already held that the earlier
appeal No. 36 of 1981 against the provision regarding instalments
.
'

E was incompetent and the filing of. an incompetent appeal or the
withdrawal of the same does not entail any legal consequences, pre-
judicing the right of the defendant-appellant to file a proper appeal
against the decree. The question which still remains to be considered
is whether the act of filing an appeal against the order regarding
i'nstalments and not filing an appeal against the decree, when it was
F open to the defendant-appellant to do _so, can be regarded to consti•
tnte such conduct on the part of the defendant-appellant as to
disentitle him to maintain the present appeal. The filing of an
incompetent appeal on the mistaken advice of a lawyer cannot, in
our opinion, reflect a.nY such conduct on the part of the defendant-
appcllant. An appeal which is not competent is' necessarily bound
G to fail, and in such a case the proper course for an appellant would
be to file a valid and competent appeal. The filing of an incompetent
appeal and withdrawal of the same do not prejudice the right to· file
a· proper appeal and cannot be held to constitute such conduct ·on
H the part of an appella!_lt as to deprive him of his right to file a valid
app~al. T).le filing of the earlier appeal No. 36 of 1981 cannot in
RAMNARAIN M LTD. v. s.T. coRPN. (A.N. Sen, J.) s;
the facts and circumstances of this case be said· to manifest any
intention on the part of the defendant-appellant that he ·would not A
prefer an appeal against the decree and the same do.es not amount
to any representation that the otherwise accepts the decree. In judg-
ing the conduct of the defendant-appellant to decide whether the
defendant·appellant had abandoned, relinquished or waived his right
of appeal against the decree;all the releve.nt facts and circumstances
which have a bearing on the question have to be considered. The
B
facts and circumstances of this case clearly go to indicate that the
defendant-appellant bad felt aggrieved by the decree and had not main-
fested any intention to accept the same and not to prefer an appeal
against the decree. As we have earlier seen, the defendant-appellant
had not only denied and disputed the case of the plaintiff-respondent c
but had also made a counter claim in the suit against the plaintiff-
respondent. The defendant-appellant had throughout contested the
suit and the claim of the plaintiff-respondent with all seriousness.
Immediately on the pronouncement of judgment the defendant-
appellant clearly manifested its intention of preferring an appeal
against the decree by caus.ing. the necessary requisition for the
certified copy of the decree and judgment to be filed. The stakes
involved in the suit of the defendant.appellant were very high and
the judgment and the decree in the suit had gone against the
defendant-appellant. In this background the filing of the earlier
appeal on the mistaken advice of the lawyer cannot in our opinion, E
legitim·ately lead to the conclusion that the defendant appellant had
abandoned or relinquished his right to prefer the present appeal and
that the defendant-appellant had become disentitled to file the same.
The further fact that the earlier appeal No . .36 of 1981 was with-
drawn the very next day after the same had been filed at the Stage
of admission and the present appeal came to be filed just a week F
after the withdrawal of the earlier appeal clearly establishes that the
defendant-appellant bad never intended to relinquish or abandon
its right to file an appeal against the decree. The earlier appeal No.
36 of 1981 which was filed on 20.1.1981 and was withdrawn on.
21.1.1981 at the time of admission, could not possibly have caused G
any preJudice to the plaintiff-respondent. The promptitude with which
the present appeal was filed just after a week on 29.1.1981 indicates
that, the·defendant appellant had never intended to give up' their
right of appeal against the decree and they have acted with all
promptness and earnestness on being properly advised as to the H
legal position and as to their legal rights. The nling of the earlier
appeal No. 36 of 1981 in the facts and circumstances of this case
58 SUPREME COURT REPORTS (19831 3s.c.R..
does no( amount to any representation or promise on the part of the
A defendant appellant to accept the decree on merits and not to prefer
an appeal fr!lm the same.. There is also no question of election on
the part of the defendant-appellant in preforring an apped against
.the order regarding the instalment and not against the decree on
merits. It is not a case where a party is.called upon "to elect one of
B two alternative remedies, when by a election of one of two alternative
remedies he loses his right to pursue the other. Jn the instant case,
the defendant-appellant has a statutory right to prefer an appeal
against the decree and any question of election on his part does not
aries.

c The withdrawal of the earlier appeal No. 36 of 1981 without
obtaining the leave of Court does not in the facts and circumstances
of this case, affect in any way the maintain~bility of the present
appeal. We have already held that the earlier appeal No. 36 of 1981
was an incompetent appeal and the withdrawal of the incompetent
[} appeal in the instant case did not . have prejudice, in any way, the
right of the defendant-appellant to file a proper appeal against the
decree. The withdrawal of the earlier appeal at the stage of admis-
sion on the very next day after .the same had been flied and the
filing of the present appeal just after a week thereafter, on the other
hand, have a bearing on the conduct of the defendant-appellant and
E they manifestly make it clear that the defertdant-appellant had always
·intended to file an appeal against the decree and it never intended
to give up his right of appeal against the decree.

In the instant case we are not satisfied that the defendant-
F appellant had obtained any advantage under the decree to preclude
him from filing an appeal against the same. Even before any instal-
ment had fallen due under the decree, the defendant appellant had
filed the earlier appeal No. 36 of 1981 against the provisions r~gard
ing instalments. It is to be noted that instead of taking or getting
any advantage under the decree in the matter of granting instalments,
G
the defendant-appellant had challenged the same long before the
question of deriving any benefit thereunder had come.. A:; we have
earlier noticed, the defendant-appellant had withdrawn the earlier
appeal the very next day and had filed the present appeal within
H eight days thereafter. In an appropriate case any party which derives
any advantage under a decree or order may, depending on the facts
and circumstances of the case, disentitle himself to challenge the
· same and will be estopped from filing an appeal against the same,
!lAM'NARAIN (P) LTD. v. s.T. coRPN. (A.JV. Sen, J.) 59
1
It is also to be borne in mind that .no execution of decree passed in a
suit on the original side is normally permitted unless a certified copy A
of the decree is on the record in the execution pro ceedii:ig. A certified
copy of the decree is not available so Jong as the decree is not drawn
up and filed. The present appeal had been filed long before the decree
had been drawn up and, therefore, there could be no question of
execution of any decree at the time when the present appeal was filed. B
The question of the defendant appeliant having obtained an advantage
.under the decree does not therefore, really arise. In the case of
Bhau Ram v. Baijnath,( 1 ) this Court observed at p. 362 :

"It seems to us, however, that in the absence of some
statutory provision or of a well-recongnised principle of
equity, no one can be deprived of his legal rights including
c
a statutory right of appeal.':

We have earlier held that no statutory provmon deprives the
defendant-appellant of his right to file the present appeal. We have
carefully considered the facts and circumstances of this case and the D
facts of this case also do not attract any well-recognised. principle of
equity to deprive the appellant of his very valuable statutory right
of appeal. The various passages from Halsbury relied on by Mr.
Nariman which we have earlier· quoted lend support to the view that
the ,defendant-appellant in the instant case by reason of its conduct
or otherwise is not estopped or has not become disentitled to file the E
appeal.

In the result the appeal has to be allowed. We, therefore, set
aside the judgment and decree of the Division Bench of the Bombay
High Court dismissing the appeal of tJie defendant-appellant on the F
ground of maintainability. We remand the appeal to the High Court
for decision on merits. In the facts and circumstances of this case, we
make no order as to costs.

H.S.K. Appeal allowed.

(I) p962J 1 s.c.R. 358,